The point of all this may be that One West never intended to modify their loan. Because in addition to the FDIC selling the Geithner family's loan for a song, they sweetened the deal further by covering either 80% or 95% of "Foreclosure Losses".
What's included in these "Foreclosure losses"? Well, while the Geithners were running in circles in a futile attempt to save their home, the meter was running on: "Accrued Interest, Attorney's Fees, Foreclosure Costs, Property Protection Costs, Maintenance and Repairs, Tax and insurance advances, Appraisal fees, Broker Price Opinion Fees, Inspections, Other"
Hope Mrs. Geithner has a recipe for goulash. George is coming for dinner.
They probably don't qualify for a modification. Mrs G makes $4100 a month, and nowhere is it mentioned how much Mr G makes, but if we assume he is working and making at least as much as his wife -- let's round down to $8000 a month, though it is probably more -- they should have no problem paying the $2,200 mortgage, which is 27.5% of their gross.
I guess they figured they'd use the FIL to claim some kind of hardship but if they're both still working, unless some major details were left out, they should have paid $2,200 all along.
ppulatie Flash in the pan
Joined: 06 Aug 2007
Posts: 36
Location: Antioch Ca
Do you work for a lender or servicer? You make assumptions about things and do not read between the lines. Since the father in law was injured and required being waited on hand and foot, it is readily apparent that the husband stays at home and does not work.
The payment on the Option ARM went up to $2200 in one year. This is likely in error as to the time frame, but there is something more devious on the part of IndyMac.
The borrower was obviously given a stated income loan, whereby the income was inflated. If she had been required to show income documentation, then she would have been turned down for the loan, but that would be "bad" for Indymac and the broker, so they got her approved. This is even though both knew that once the loan began to adjust, the borrower would go into default.
I hear these stories EVERYDAY from attorneys. I mean every day. Attorneys and loan mod companies are getting NOWHERE with Indymac.
The only time that mods get done are when attorneys file the lawsuits. Then, when Indymac assigns a law firm to handle the lawsuit, the attorney can call the firm, and suddenly, loan modification talks open up for real.
These borrowers were set up to fail from the very start, like most were done from 04-07. It was the banks and investment firms, once again "looting" the country, like they do every ten years or so.
Mandelman - I am the partner in a firm that does loan modifications and litigates in foreclosure defense and quiet title actions. By far, One West is the worst company to deal with. They are argumentative and adversarial at every term. If we say the paper we sent over is white, they'd say it's black. We currently have 2 active litigation actions against them for going ahead and foreclosing on a property after they told our offices that the trustee sale had been postponed and in active negotiation for a loan modification. We simply have to create a groundswell of pressure on them including contacting good real estate attorneys to assist, contacting your state attorney generals and contacting the FDIC and complaining. Thanks for continuing to keep the heat on them!
Since the father in law was injured and required being waited on hand and foot, it is readily apparent that the husband stays at home and does not work.
I wouldn't say it's readily apparent that the able-bodied, money-earning man of the house quit his job to take care of his wife's father just when he's got an increasing mortgage payment. Do you know this for a fact? One really can't assume such things!
One might assume the wife quit her job to take care of her own father, especially since wives usually make less than their husbands and women are the typical ones to sidetrack their own careers to nurture their families. But she didn't.
I don't think either of them quit their jobs. And if they were the least bit smart, they would keep both incomes, keep paying their mortgage, and hire some domestic help if they couldn't rearrange their schedules around the father.
Funny how when people want to stay in a house they can't afford, they pull out every sob story and base everything on emotions. Then once they decide to walk, it's just a business decision. Bottom line: They could afford the mortgage, they just didn't want to pay.
P.S. Did you really say I make assumptions AND I don't read between the lines? If you don't see the irony in that, I have nothing more to say.
punstress - the story illustrates the incompetance and total disregard the lenders have for their clients and for our government. If these people did not qualify for a modification, they should have been told once.. from the get-go. Not strung along for months with letters of encouragement. Their individual situation doesnt matter because you can bet there are thousands of ligitimate mod candidates who are getting the same treatment and losing their homes. This is a mess, and who's to blame can make for a lengthy heated debate. In the meantime, regardless if unworthy homeowners are trying to take advantage..,. the banks are blatantly bucking the system and screwing many Americans in the name of greed. If they do not take responsibility for what they created, soon, 2010 is going to be the ultimate implosion year. believe me, my hopes are not too high.
"They refinanced a few years back with a loan from IndyMac, who apparently felt that the Option ARM mortgage design was the young family’s ideal option."
We all know that the Option ARM shouldn't have been made available to the masses, but the borrower is the one that signs the loan documents.
Did they do any cashout refi's? If so, how many? The number of people that didn't use their home as an ATM is few and far between.
Is it now against the law to rent a property? If you can't afford a real payment, you shouldn't be a home owner.
Financial Literacy has not been a forte of the average American. Sure, ignorance is not an excuse but I can't tell you how many times I've heard people being sold option arms because they couldnt qualify for anything else. They trusted the person or entity selling it to them.... that was their biggest mistake. Mortgage Originators do not have any incentive to do what's right for the customer. With that, these products should never have been made available to the american idols who sold them to the american idols.
marksgreen Dud?
Joined: 14 Feb 2009
Posts: 5
Location: Atlanta, Georgia
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